THIS IS A SAMPLE OF MARKET SIGNALS AVAILABLE FOR SOPHISTICATED, ACTIVE TRADERS.
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MCEL LONG TERM PROGRAMS
(COMPLETE SUMMARY SINCE MARKET CLOSE OF FRIDAY, JULY 18, 2008.)

Commentary First. The U. S. stock market continued lower since our May 22 sell of the Dow Futures at 12,624 recommendation. We are took profit on 75% of those short positons at about 11,800 in June. Last week on July 16, nearly two months after our initial short stock position, we purchased the remaining 25% for profit at 11,206.
We simultaneously went long Dow Futures at 11,206, 7/16 expecting a one to two week rally in which to take long profits and then sell aggressively expecting the continuation of this potential two year bear market.

U.S. Dollar Index went into a bull mode July 3 and returned to the bear camp July 9. The next cycle low is due July 17-18. We traded the short Dollar versus other crosses but are watching for confirmation of a cycle due that favors Dollar strength. See specifics below.

EURUSD went into a Daily sell with shorts instated at 1.5920, 7/16. Half profit at 1.5880 and half profit at 1.5820 same day for +140 pips total. Two criteria are needed to confirm the Euro top is for real. The first trading below 1.5948 was met. The second needing a daily close below 1.5800 is not yet met -- that Daily bear possibility would be negated if the EURUSD daily closes again above 1.5900. So this market's direction this week out of the 1.5800-1.5900 range should determine Long Term program price action for the remainder of the week. 

AUDUSD half longs profit booked at .9694, 7/11. +100 pips and second half booked at .9704, 7/17 for +110 pips.
Shorts were instated at .9704, 7/17. Initially it would take prices above the new 25-year high set last week near .9850 to negate this bearish trade as we enter this week.

GBPUSD remains automated in MCEL Forex-Premium with excellent returns in June. The British economic news appears as bad as the U.S. and this pair lost its upward momentum midweek to close in the middle of its 1.9800-2.0100 weekly range. This cross should continue to give big broad trading ranges from which to trade.

USDCAD we do not trade as much, but it gave a clean buy against the Dollar. 
Half profit below 1.0100 for +50 pips, 7/11 and Half profit for 47 pips, 7/15.
We remain flat for a while in this pair. 

USDCHF. Along with our SELL recommendation above 1.0250 the Long Term clients saw this cross accelerate lower. Half Profit was taken at 39 pips, 7/11 and half taken for 57 pips, 7/17.
With positive U.S. stocks this pair turned the Long Term program bullish 7/17.
We took half profit at 51 pips, 7/18, which is ahead of the projected low cycle date of  7/22-23. A move above 1.0260 would yield counts to 1.0319-1.0405.

USDJPY. We stated the week of 7/11, "The SELL recommendation here above 106.70 has a longer term bear look on the daily chart." This pair subsequently moved as low as 103.76. We took half profit here at 105.80, 7/11. +84 pips and half profit at 34 pips, 7/17.
Bullish U.S. stock news last week placed this market long 7/17 simultaneous with exiting shorts. Half profit was booked at 26 pips, 7/17.
Trading above 107.75 would confirm a cycle high due 7/28-29.

XAUUSD -GOLD. We had been short from July 7 and took $1,000 per 100 oz. on first half trade, but gave back $900 per lot as we rolled from short to long last week. The longs at 934 per oz. on 7/10 took half profit at 944, 7/10 for $1,000 per. Second half profit was booked at 977, 7/15 for $4,300 and Flat.
Second longs were added 7/11 at 947 and half profit booked in those Friday at 962 for $1,500 per and second half profit at the same 977 for +$3,000 per and Flat.  
New shorts were added at 957 per oz., 7/17 with half profit booked at $500 per contract, 7/18.
This market is in a Long Term Sell, which should be aided by the Bank of America "positive" news this morning. But, too cheap oil as we enter the week with a Gulf of Mexico Hurricane may limit downside potential. Place the stop per the morning instructions.

This has been an outstanding month for medium term and long term clients as we have captured profit from these large historic market swings with defined risk. Those of you in the more conservative risk management programs have had less trades because of higher volatility and higher risk per trade. But, in general you are not giving up equity as those investors in the stock and real estate markets. 

Each of the McElhannon programs has defined trading rules and specific stop loss management. Those clients who have funds in all of our offerings tend to do best over time.

ENERGY, INTEREST RATES, AND SOFT COMMODITY COMMENTS.

CRUDE. The automated McElhannon program took $4.50 per barrel long profit on July 7 above $143. That subsequent move carried shorts three days into July 10 for a position reversal near $138 in August Crude for an additional $5.00 per barrel profit. $9,500 realized profit per contract.

The long from near $138 with Crude traded above $147, and our program took profit at 141.42, 7/15 for a gain of over $3.00 per barrel on the third leg of this recent energy trade. $3,000 per contract.
We simultaneoulsy moved to short Crude at 141.42, 7/15. Profit taken at 134.42, 7/17. +$7,000 per.
Longs from 134.42 took part profit of $1,000 and stopped second half Breakeven.
Automated shorts re-entered 132.50, 7/17. Half profit below 130.00 same day and half profit on the close Friday, 7/18 at 128.50, for +$6,500 per contract and FLAT.

We roll to the September 2008 contract,
and are long at 130.50 with Hurricane Dolly coming into the Gulf of Mexico and no positive Iranian/U.S. news..
For well capitalized clients only. A recent article showed that Southwest Airlines hedged 73% of its fuel costs over the past few years as a participant in our free market system, and is therefore faring better than its competitors. 

INTEREST RATES. With strength in stocks last week after bank earnings reports, expected selling came into T-Bonds, T-Notes, and EuroDollars as flight to quality sentiments eased. We are long Sept. Bonds Puts with unrealized profits over $500 per Put, and short December EuroDollars at 96.94, 7/17. 

SOFT COMMODITIES as with the Currencies have had large moves up and down last year and this year.

OCTOBER SUGAR was recommended on the long side at 11.00 cents in early June. Currently it is near 14.00 cents per pound and looks fundamentally higher but technically due a price correction. 300 points X $11.20 per is a nice gain here.
We recommended shorts in SBV at 13.49, 7/14. Half profit at 12.49, 7/18 for +$1,120 per contract. Friday close was 12.45. We will tighten stops on remainder.

DECEMBER COTTON rallied above 84.00 cents per pound in June but a strong technical Sell signal and weak expected fundamentals from the economy caused us to recommend shorts near 81.00 on June 30. This market dropped to below 71.00 cents per pound this week and we moved profit locking stops to 74.00 to lock about 700 points X $5 = +$3,500 per contract, 7/11. Eleven days. We stayed flat last week awaiting a new trade signal. A Major Low is due in Cotton.    

DECEMBER CORN. Weakening Crude prices brought profit taking from the longs as anticipated and needed to complete recent bullish sentiment.
Short from 7.31 per bushel, 7/08. Half profit at 6.60, 7/16. +$3,550 per contract. Holding second half short, which closed 7/18 at 6.29. Stops will be tightened to lock in the more than $1.00 per bushel second half profit.

NOVEMBER SOYBEANS. More bullish fundamentals and weather kept this market in a bull mode longer, but weakening Crude lead to profit taking last week by the bull camp. We recommended shorts at 15.60, 7/14. Half profit at 14.91, 7/16 for +$3,450 per contract. Friday's close at $14.48 per bushel leaves more than $1.00 per bushel in unrealized profit. Tighten stops to lock in most of this gain per our instructiions this AM. 

ALL NUMBERS ARE GROSS RETURNS.

Past performance is not necessarily indicative of future results. Substantial risk is involved in Forex and Futures trading. Read the full disclaimers at our website.

THIS IS NOT A TRACK RECORD, BUT RATHER A TRADE RECOMMENDATION SERVICE WHOSE CLIENT LIST HAS INCLUDED DOMESTIC AND INTERNATIONAL HEDGE FUNDS, TIER ONE BANKS IN NEW YORK, ENERGY COMPANIES, FOREIGN AND DOMESTIC BROKERAGES, AND SOPHISTICATED INDIVIDUAL TRADERS.

THE CLIENTS WE HAVE DIRECTED THE LONGEST IN FOREX KEEP SMALLER AMOUNTS IN FOREX-PREMIUM, LARGER AMOUNTS IN FOREX RETAIL DUE TO ITS LOW DRAWDOWNS, AND VARYING AMOUNTS IN OUR LONG TERM FOREX PROGRAMS DEPENDING ON RISK TOLERANCE. WE IDENTIFY THESE TYPE TRADES GENERALLY ONCE PER MONTH. THIS YEAR WE ARE AT MORE THAN TEN TRADES FOR JULY. INITIAL RISK IS HIGHER IN LONG TERM PROGRAM TRADES, BUT IN THE JUNE & JULY TRADES WE WERE AT BREAKEVEN STOP LOSS BY THE SECOND HALF OF THE FIRST DAY OF EACH TRADE. 

PROPRIETARY TIMING AND 3-PRONGED MONEY MANAGEMENT ARE THE KEYS.

MANY OF THE SOPHISTICATED USERS OF THIS LONG TERM PROGRAM HAVE ALSO TAKEN AT LEAST LEVEL ONE OF THE PROPRIETARY MACK STACK SEMINARS DESCRIBED at www.mcelhannon.info

These strategies are for larger, more sophisticated investors. Use them solo or use them in conjunction with the two MCEL Forex programs for strategy diversification. Email for more detail. mceltexas@yahoo.com

Past performance is not necessarily indicative of future results. Substantial risk of loss is involved in Forex and Futures trading. There is no guarantee of profit. There is no guarantee of big gains. There is no guarantee against loss. There will be losing trades. Read the full disclaimers at our website before investing funds. Talk with our staff for program and results clarification before investing.

PHILIP WORLEY, President
McElhannon Group, Inc. 
512-715-9191
mceltexas@yahoo.com